Marriott Vacations Worldwide Corp

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VAC : NYSE : Services
$86.42 up 1.29 | 1.52%
Today's Range: 84.88 - 86.93
Avg. Daily Volume: 304600.0
12/08/16 - 4:02 PM ET

Financial Analysis


MARRIOTT VACATIONS WORLDWIDE's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line.

During the same period, stockholders' equity ("net worth") has decreased by 15.58% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)406.99407.14
EBITDA ($mil)52.7755.17
EBIT ($mil)48.0949.88
Net Income ($mil)26.8121.56


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)292.6443.44
Total Assets ($mil)2386.172527.03
Total Debt ($mil)804.72769.72
Equity ($mil)907.381074.91


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin37.6936.85
EBITDA Margin12.9613.55
Operating Margin11.8212.25
Sales Turnover0.750.7
Return on Assets5.053.58
Return on Equity13.298.43
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.470.42
Interest Expense7.628.13
Interest Coverage6.316.14


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)26.9931.06
Div / share0.30.25
EPS0.970.67
Book value / share33.6234.61
Institutional Own % n/a n/a
Avg Daily Volume281600.0341874.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 30.32 for the Hotels, Restaurants & Leisure industry and a discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 2.26 indicates a discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 7.40. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, MARRIOTT VACATIONS WORLDWIDE proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
VAC 18.47 Peers 30.32   VAC 19.95 Peers 15.08

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

VAC is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

VAC is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
VAC 14.47 Peers 30.95   VAC 0.86 Peers 1.37

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

VAC is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

VAC trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
VAC 2.26 Peers 7.40   VAC 49.27 Peers 69.89

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

VAC is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, VAC is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
VAC 1.14 Peers 2.87   VAC 1.73 Peers 5.67

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

VAC is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

VAC significantly trails its peers on the basis of sales growth

 

 

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